Boston real estate for sale: Confidence is the key for first-time home buyers
Boston Condos and Real Estate for Sale
Boston condo for sale buyers are holding out for units that meet all their criteria and location preferences, or they’ll wait for the “perfect” place to come along that they can afford—even if it’s at the top of their budget. This approach is not helping to sell the Bostom condos currently for sale, which are increasing on days on the market.
Boston condo mortgage rates
It’s old news that mortgage interest rates are significantly higher now than what many current condo sellers secured when they bought their properties. Boston condo sellers want to get a fair price for their condos, but buyers (many of whom are first-time purchasers) are struggling with the reality of high mortgage payments with their 20% down payments. Adding to the financial strain are Boston condo fees, which can easily approach $1,000 per month or more in larger buildings.
This disconnect between buyers and sellers finds our Boston condo for sale market hitting a wall.
And buyers are not exactly in a hurry. They’re willing to hold out for what they truly want, biding their time until interest rates drop a bit, by the way.
I’m also noting that buyers aren’t even making offers significantly below the asking price. They prefer to wait for a price reduction or for a new unit to come on the market that’s within their price range.
Boston condos for sale and the bottom line
I believe the market will loosen up when interest rates start to drop. However, this could also lead to increased competition among buyers. My advice to Boston condo buyers heading into September fall market, is to focus on a unit they genuinely like and negotiate with the seller to reach an agreement.
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Boston real estate for sale: Confidence is the key for first-time home buyers
Boston real estate for sale: Confidence is the key for first-time home buyers and they appear to have it. Approximately 50 percent of purchasers in 2023 will be new to the market
In 2023, 50% of purchasers are newly entering the real estate market
Over the course of three years, new homeowners have compromised an increasingly larger share of the housing market, with their total numbers amounting to 50% in 2023 based on the latest Consumer Housing Trends Report from Zillow. These figures reveal that first-time buyers composed 45% of all purchasers in 2022 and 37% in 2021.
It is speculated that this could be because the majority of existing owners hold mortgage rates beneath 5%, and consequently, are not inclined to enter the market again. According to Zillow’s research, these people are half as likely to contemplate relocation compared to first-time buyers.
Manny Garcia, a Senior Population Scientist at Zillow, pointed out that due to elevated mortgage rates and a deficit of dwellings, potential return buyers are forced to remain in their owns houses. This is resulting in an increased amount of first-time buyers vying for the limited number of available and economical starter homes.
Zillow discovered that almost 50% of all initial purchasers were millennials, aged 29-43, and Gen Z composed 27% of all newcomers to the housing market this year.
First-time purchasers experienced the most rejections in regard to loan applications for a home loan, with a third of those studied reporting multiple refusals prior to finally obtaining authorization.
Additionally, new purchasers greatly appreciated realtors who contributed to making decisions associated with their offers, ones who put together and delivered documents and those that located prospective houses.
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Boston real estate for sale: Confidence is the key for first-time home buyers, however, confidence in the housing market is not very high right now.
Buying a home
The media will slow down the Boston condo for sale market
The last time Americans were this turned off by the U.S. housing market, borrowing costs were over five times the current rate.
The share of people who think now is a good time to buy a home fell in September to 29%, extending the plunge from March when the proportion was more than twice as high, data from the University of Michigan consumer sentiment survey showed Friday. It’s also the smallest chunk of respondents since 1982.
Back then, the average for a 30-year fixed-rate mortgage topped 15%. That compares with today’s 2.86% rate, according to Freddie Mac.
The figures highlight how property price appreciation has rattled prospective buyers and more than offset the bright side of cheap borrowing. Prices have skyrocketed amid low inventory as Americans compete for space, with year-over-year gains on previously-owned, single-family homes exceeding 20% –surpassing the inflation-fueled increases seen in the late 1970s and early 80s, according to the National Association of Realtors.
The median selling price of such properties rose 18.6% in July from a year earlier to $367,000, a slight drop from the previous month. August figures due next week will show if fed-up homebuyers have helped extend the cool-off.
https://finance.yahoo.com/news/americans-haven-t-down-housing-174212114.html
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Boston Condos and Real Estate for Sale
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Boston real estate for sale for first-time homebuyers can seem overwhelming. Thankfully, there’s a lot of great information out there to help you feel more confident as you learn about the process. For those in younger generations who aspire to buy, here are three things to consider sooner rather than later in your journey:
1. Understand What it Takes to Purchase a Home
Overall, Millennials make up the largest group of homebuyers in today’s real estate market, and Gen Z is not too far behind. A recent study shared by Freddie Mac shows, however, that Generation Z isn’t as confident in the home buying process as Millennials. The best thing potential young buyers can do is understand what it takes to buy a Boston condo for sale. Learn as much as you can about the mortgage process, down payment options, and the overall steps to take along the way.
2. Realize Your Opportunity to Build Wealth
Owning a downtown Boston condo allows you the chance to put a small portion of the home’s value down when you buy, and then watch your appreciation grow on the full value of the home – not just on the down payment. It’s one of the best investments you can make and a form of ‘forced savings’ working in your favor over time. The added bonus? You get to live there, too.
3. Find Someone You Trust to Help You Through the Process
Having someone you trust to guide you through the Boston real estate for sale process is invaluable. Finding a local real estate expert to help you navigate through the transaction and feel more confident as you make important decisions could be the best choice you make.
For Millennials and Gen Z’ers thinking about buying, today’s historically low-interest rates combined with the outlook for future home appreciation is a big win. This means whatever you buy today, you’ll be bragging about 10 years from now. You can feel confident about that!
Boston Real Estate for Sale & The Bottom Line
If you’re ready, buying your first downtown Boston condo sooner rather than later is one of the best decisions you can make. But there are many things to consider before taking that step, so let’s work together to help you confidently navigate the full journey.
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